A company linked to the Obeid family with high-profile Liberal Party figures on its board gouged millions of dollars from the state-owned Sydney Water, including for limousines and political donations, the Independent Commission Against Corruption heard on Tuesday.

Assistant Federal Treasurer Arthur Sinodinos was on the board of the Obeid-linked infrastructure company Australian Water Holdings when it was stonewalling attempts by Sydney Water to inspect its books.

AWH had its expenses covered by Sydney Water under a lucrative contract to provide water infrastructure in Sydney's north-west. By late 2008, the utility was footing the bill for up to $800,000 in monthly expenses, including $7333 paid to a slush fund linked to former NSW energy minister Chris Hartcher and more than $75,000 in donations to the Liberal Party.

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Fairfax Media can reveal AWH donated a further $10,000 to Treasurer Joe Hockey's campaign weeks before the 2010 federal election.

But the donation was returned in February 2013, after reports began to circulate about corruption concerns at AWH.

Corruption hearing: Eddie Obeid is linked to Australian Water Holdings. Photo: Peter Rae

Documents at ICAC on Tuesday reveal the company also made a $2200 donation to the Queensland branch of the Labor Party.

Sydney Water, led by Kerry Schott, was trying to halt the massive bills that AWH kept submitting without explanation or proper documentation.

Senator Sinodinos, who was then treasurer of the NSW Liberals, was one of the recipients of a 2010 email from fellow AWH director John Rippon which read: ''If only the bitch [Dr Schott] was gone we could deal with these guys.''

Dr Kerry Schott: in charge of Sydney Water. Photo: Arsineh Houspian

The inquiry has previously heard that corrupt former ALP powerbroker Eddie Obeid tried to ''eliminate'' Dr Schott by making false corruption complaints against her. Mr Obeid unsuccessfully urged a fellow minister to ''sack the bitch'', and claimed that Mr Hartcher would make a corruption allegation against her.

Among the expenses being forced on Sydney Water were the exorbitant salaries the AWH directors were paying themselves.

Liberal Party fund-raiser and Obeid family associate Nick Di Girolamo was on a $1.1 million salary, plus a $250,000 ''sign-on'' fee and a bonus of the same amount.

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The Obeid-linked water company at the centre of conflict of interest allegations that are before the Independent Commission Against Corruption made multiple donations to the Liberal Party as it sought political favour, including a direct donation of $10,000 to Joe Hockey's federal electorate committee in 2010 - just weeks before the election that year.

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Company at the centre of a corruption inquiry and linked to crooked former powerbroker Eddie Obeid made multiple donations to the Liberal Party, including $10,000 to Joe Hockey's federal electorate committee in 2010 - just weeks before that year's election.

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The NSW Independent Commission Against Corruption inquiry that has enmeshed Liberal minister Arthur Sinodinos may be a turning point in fighting the entrenched bipartisan business of corrupt crony capitalism in NSW.

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Prominent businessman John McGuigan, who was found to be corrupt at a previous Independent Commission Against Corruption inquiry into the Obeids' $30 million coal deal, was going to invest profits from the sale of his coal company to buy into another Obeid-linked company.